The Direct Homebuyer Soft Second Mortgage Assistance Program provides down payment and closing costs subsidies to eligible first- time homebuyers. Subsidies made available to Homebuyers Bridge the gap between the purchase price of the home and the maximum first mortgage loan amount. Subsidies also include closing costs.
The City of New Orleans Office of Community Development has $3,000,000 of Community Development Block Grant funds (CDBG) was made available for the Direct Homebuyer Soft Second Mortgage Assistance Program March 11, 2019 and will add additional funding as it becomes available. This program provides down payment and closing cost subsidies to eligible First-time Homebuyers whose income does not exceed 80% of the Area Median Income (AMI).
The Direct Homebuyer Soft Second Mortgage Assistance Program assist Homebuyers to bridge the gap between the purchase price of the home and the maximum first mortgage. Eligible Homebuyers using CDBG funds may receive up to $55,000 in soft second funds and up to $5,000 in closing cost assistance (CDBG guidelines only allow us to pay 50% of the total closing cost).
Eligible Homebuyers using CDBG-DR funds may receive up to $65,000 in soft second funds and $5,000in closing cost assistance. (Homes located in an area designated by the Federal Insurance Administrator as a special flood hazard area are not eligible for this program).
Maximum Sales Price in Orleans Parish is $324,000
To qualify, the buyer must:
- Complete Homeownership training by one of the HUD Approved Homebuyer Training Agencies
- Qualify for a first mortgage by an Approved Lender
- Meet HUD 80% Area Median Income Guidelines – Income Guideline Chart
Additional Documents:
- Underwriting Guidelines for CDBG Funds
- Underwriting Guidelines for CDBG-Disaster Recovery Funds
- CNO State Approved Closing Agencies
For More Information:
Please contact Tonya Bernard 504-658-4245, Taymia Muse 504-658-4243 or Lindsay Smith 504-658-4244.
